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The year 2025 marks a turning point in global military budgets. Russia plans to cut its defense budget for the first time since initiating the full-scale invasion of Ukraine, indicating economic strain. Conversely, Ukraine's budget for its Armed Forces has seen a significant increase as the Verkhovna Rada approved an additional UAH 412 billion for defense. The Netherlands joins the trend by raising its defense budget to meet NATO's 2026 targets, allocating a portion to aid Ukraine. Meanwhile, the European Commission proposed over 80 billion euros from the new 2028 EU budget to support Ukraine. These changes underscore a reallocation of resources in response to mounting geopolitical pressures and commitments to international security alliances.

Why is Russia reducing its military budget for the first time since the invasion?

Faced with escalating economic pressures, Russia's military spending cut reflects strained financial resources. This decision marks a significant shift since the invasion of Ukraine, suggesting possible limits in sustaining prolonged defense expenditures. The Kremlin re-evaluates its financial commitments amidst ongoing global scrutiny and economic sanctions.

What are the financial implications for Ukraine with its increased defense budget?

Ukraine's defense budget hike, with over UAH 412 billion allocated, underscores its prioritization of military strengthening. This aims to boost its armed capabilities and security resilience, ensuring preparedness against current threats while signaling to international allies its serious commitment to self-reliance in defense.

How does Netherlands' increased defense spending reflect its global security commitments?

By raising defense spending to NATO-aligned targets, the Netherlands strengthens its military capabilities and affirms its commitment to both collective security responsibilities and international support, particularly aiding Ukraine. This strategic financial decision emphasizes its proactive role within global security frameworks.

What role does the European Union play in financially supporting Ukraine through its budget?

The European Union, through its proposed budget allocation exceeding 80 billion euros from 2028-2034, plays a pivotal role in bolstering Ukraine's reform and recovery efforts. This financial backing highlights the EU's commitment to supporting Ukraine's integration within Europe and reinforces its position in maintaining regional stability.

What are the broader implications of these budget changes on global military dynamics?

The shifts in defense budgets across nations like Russia, Ukraine, and the Netherlands indicate evolving military strategies driven by geopolitical tensions. These financial decisions impact global military dynamics, reflecting realignments in defense priorities and partnerships, emphasizing the interconnected nature of international security concerns.

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насиров State budget revenue performance exceeded 12 billion hryvnia as of end May, - Nasirov The state budget revenue performance exceeded 12 billion hryvnia over the period of Jan. - May 2016. 25 379 120 Previously in trend: Budget 2013

пентагон US Senate adopts 2017 Pentagon budget, stipulating for $500 million in aid to Ukraine The upper chamber of the U.S. Congress on Tuesday passed the bill S.2943 authorizing appropriations for fiscal year 2017 in terms of defense. 40 717 159 Ukrainian Politics

GDP growth by three percent, more than eight percent inflation rate, and 27.2 hryvnia for USD, - Finance Ministry dwells on draft budget resolution-2017 The draft budget resolution for 2017, developed by the Ministry of Finance of Ukraine, envisages GDP growth by 3 percent with an inflation rate of 8.1 percent and the exchange rate of 27.2 hryvnia to one US Dollar. 11 476 51 Ukrainian Politics

укроборонпром Ukraine fails to purchase arms, cover repair due to underfunded State Defense Order Ukrainian army is critically underfunded by UAH 3.6 billion (approx. $142.241 million) due to political discrepancies over the draft law on confiscation of illegally acquired assets of former President Yanukovych and his cronies. The relevant Verkhovna Rada committee requires to urgently allocate necessary financing from budget's general fund in order to strengthen the army. 93 625 203 Previously in trend: Budget 2013

8 million households to require subsidies after gas tariffs go up, - Ministry of Social Policy The number of families that require rent and utility subsidies will reach 8 million after a single gas price for all categories of consumers is set on May 1. 18 831 125 Ukrainian Politics

Ukraine spends nearly 20 percent of state budget on defense and security, Poroshenko says 20 percent of Ukraine’s budget expenditures cover defense and security needs. 6 458 32 Previously in trend: Budget 2013

гройсман Pension Fund deficit makes some UAH 80 billion, - Hroisman Prime Minister Volodymyr Hroisman estimates the Pension Fund deficit at UAH 80 billion (approx. $3.121 billion). 30 449 109 Economics

Rada speaker promises protesters outside parliament to consider financing of science while amending budget in June Verkhovna Rada of Ukraine Chairman Andrii Parubii has met with representatives of the scientific community who gathered outside the parliament on Tuesday demanding funding of science. 4 110 15 Ukrainian Politics

яценюк yatseniuk Yatseniuk fully supports finance minister’s activities: "This is only reasonable policy" Prime Minister Arsenii Yatseniuk says that he fully supports the activities of the Finance Ministry headed by Natalie Jaresko. 33 504 62 Ukrainian Politics

Hroisman signed law abolishing postponement of e-declarations until 2017 Verkhovna Rada Chairman Volodymyr Hroisman has signed the law cancelling the norm which amended the 2016 state budget law and stipulated that electronic income declarations of civil servants be introduced no earlier than Jan. 1, 2017. 38 920 101 Ukrainian Politics

яценюк No funds for immediate increase of social payments, - PM Yatseniuk Ukraine's government has no funds needed for immediate increase of social standards in the country. 36 922 325 Ukrainian Politics

Share of Russia’s budget oil and gas revenues slumped from 70 to 45 percent, - PM Medvedev The share of the Russian federal budget revenues from oil and gas production fell from 70 to 45 percent. 22 591 167 Previously in trend: Economic disaster

яресько Salary of ATO soldiers to increase fourfold, - Minister Jaresko Finance Ministry-developed budget 2016 has allowed to increase monthly salary payments for base area soldiers by almost three times, from 2,341 to 7,000 UAH ($265 monthly), and for anti-terrorist operation (ATO) soldiers - by four times, to 10,300 UAH ($389). 46 699 135 Previously in trend: Budget 2013

IMF has no comments on Ukraine’s budget-2016, Finance Minister Jaresko says The International Monetary Fund has got no observations regarding the adopted Law on State Budget of Ukraine for 2016. 2 411 45 Economics

бюджет Authorities approved decent defense and security budget despite crisis, - Butusov. DOCUMENT Censor.NET Chief Editor Yurii Butusov believes that given the current economic crisis, authorities have approved a decent defense and security budget for 2016. 37 956 198 Previously in trend: Budget 2013

военные присяга корпус военнослужащие ато воины восточный Privates to be paid no less than 7,000 UAH under contract Nonrated military personnel serving in the Armed Forces of Ukraine under the contract will get no less than 7,000 hryvnia (about $280) monthly. 31 744 179 Economics

IMF agrees that state budget-2016 meets objectives of cooperation program with Ukraine, Finance Minister Jaresko says The International Monetary Fund has agreed that the budget adopted Dec. 25 meets the objectives of the program of Ukraine's cooperation with the Fund. 4 604 39 Previously in trend: Budget 2013

ес MP Chumak named author of amendment jeopardizing visa-free regime with EU The author of the amendment to the law on 2016 state budget, postponing the implementation of the electronic declaration system until 2017, is said to be Volia Narodu MP Andrii Derkach. 86 574 253 Ukrainian Politics

порошенко Poroshenko signs state budget law 2016 President Petro Poroshenko signed the law on the state budget for 2016 on Thursday, Dec. 31. 8 433 68 Previously in trend: Budget 2013

яресько Budget approval does not guarantee new IMF tranche, - Finance Minister Jaresko The Verkhovna Rada's approval of the state budget bill for 2016 is a prerequisite for providing of another tranche by the International Monetary Fund; however, it does not guarantee it. 10 008 76 Previously in trend: Budget 2013

Hroisman signs state budget 2016 law Verkhovna Rada Chairman Volodymyr Hroisman has signed the law on the state budget of Ukraine for 2016. The document has been forwarded to the president for signing. 4 154 38 Previously in trend: Budget 2013

полторак Minister Poltorak accused army of untimely disbursement of arms supply and maintenance funds, - Censor.NET source Chief of the General Staff Viktor Muzhenko bears direct responsibility for implementing arms supply and maintenance programs, while the allegations were addressed to Deputy Chief of the General Staff, Lieutenant-General Volodymyr Khyzhyi and Head of General Staff Operational Support Department Mykola Kravchuk. 22 362 58 Ukrainian Politics

порошенко Poroshenko on 2016 state budget: "This is minimum necessary basis for reforms" President Poroshenko considers the state budget for 2016 the minimum necessary foundation for reforms. 12 703 142 Previously in trend: Budget 2013

кличко Klitschko complains about state budget-2016: "It exposes Kyiv to survival instead of development" The conditions stipulated by the state budget for the capital place Kyiv into a situation of survival rather than development. 10 555 51 Previously in trend: Budget 2013

вр депутаты бюджет-2016 New Year gift: how parliament adopted budget for 2016. PHOTOS Verkhovna Rada MPs traditionally adopted the next year budget in the dead of night. 116 186 0 Previously in trend: Budget 2013

бюджет госбюджет Rada approves state budget for 2016 law Ukrainian parliament has passed the state budget law during its extraordinary meeting at night of Dec. 25. 99 158 323 Previously in trend: Budget 2013

Parliament will meet at 11 p.m. to vote for draft state budget, - Parubii First Deputy Chairman of the Verkhovna Rada of Ukraine Andrii Parubii states that the parliament will meet at 11 p.m. to take the "landmark decisions". 8 099 84 Previously in trend: Budget 2013

Cabinet expects Rada to vote budget after 10 p.m. The Cabinet of Ministers of Ukraine plans to submit the draft state budget for 2016 for consideration by the parliament at 10 p.m. 4 017 46 Previously in trend: Budget 2013

Lawmakers may be adopting state budget until morning, - MP Honcharenko The agreement has been reached between the coalition and separate deputy groups to support the disputed issue on the new VAT refund system, which in turn will allow the parliament to vote for the 2016 budget. 7 077 36 Previously in trend: Budget 2013

парламент Rada to work today till 2016 budget passed. Two new MPs took oath Today, Dec. 24, the MPs will work until all issues on the plenary session agenda are dealt with. 10 705 32 Ukrainian Politics

Yatseniuk warns lawmakers that they will have to celebrate New Year in parliament Prime Minister of Ukraine Arsenii Yatseniuk has announced that the country will face economic collapse if the state budget-2016 is not adopted. 10 179 102 Previously in trend: Budget 2013

рада Budget bills voting failed. Speaker Hroisman closes Rada session Speaker of the Verkhovna Rada Volodymyr Hroisman has closed today's session of the parliament. 41 337 136 Previously in trend: Budget 2013

яценюк PM Yatseniuk asks MPs to "not throw the country into economic collapse" Ukraine's Prime Minister Arsenii Yatseniuk has appealed to the Verkhovna Rada with a request to support changes to the Tax code and budget draft for 2016, together with accompanying laws. 23 789 156 Ukrainian Politics

Rada instructs Cabinet to finalize draft state budget-2016 and submit it to parliament before Dec. 24 The Verkhovna Rada of Ukraine has instructed the Cabinet of Ministers to finalize the draft budget for 2016, taking into account its discussion during the presentation in the parliament, and submit it for the parliament’s consideration before Dec. 24. 3 263 15 Previously in trend: Budget 2013

Decentralization, payroll tax reduction, and simplified taxation as key features of 2016 budget Verkhovna Rada Speaker Volodymyr Hroisman hopes that this week the parliament will adopt the draft budget for 2016, and the document will become effective on Jan. 1. 12 142 83 Previously in trend: Budget 2013

State budget working group agreed on three provisions, - Hroisman This week's key task of the Verkhovna Rada of Ukraine is to approve the state budget for 2016. 7 040 11 Previously in trend: Budget 2013

US to raise financial support to Ukraine next year On Dec. 18, 2015, President Barack Obama signed into law the Consolidated Appropriations Act, 2016, passed by the Congress earlier that day. 7 609 164 Previously in trend: Aid to Ukraine

яценюк Yatseniuk voices main tasks for state budget in 2016, hopes draft is ready until Dec. 24 One of the major goals of the State budget for next year is to provide for increase in social standards. 7 529 72 Previously in trend: Budget 2013

вр бюджет Officials included 100 billion hryvnia into draft budget to cover their wants, - expert group of co-authors of parliamentary tax reform draft The draft budget-2016 has been developed taking into account increased funds that officials will be able to dispose off as they see fit. 30 527 77 Ukrainian Politics

Parliament to start consideration of state budget Dec. 17, - Hroisman Chairman of the Verkhovna Rada of Ukraine Volodymyr Hroisman stated that the Ukrainian parliament will begin considering the budget Dec. 17. 2 942 30 Previously in trend: Budget 2013

Minister Jaresko predicts budget revenue growth in 2016 by 16 percent State budget revenues in 2016 will amount to UAH 601 bln (approx. $25.23 bln), which is 16 percent as much as in 2015. 3 411 26 Economics

Russia earmarked just $1.2 billion for campaign in Syria in 2016, - Bloomberg The Russian Federation initially earmarked just $1.2 billion for the war for all of 2016. 12 017 117 Previously in trend: War in Syria

Cabinet approved draft 2016 budget and Tax Code, - Minister Abromavicius The Cabinet of Ministers approved the draft Tax Code and the draft state budget for 2016 based on it on Thursday. 10 766 19 Previously in trend: Budget 2013

Hryvnia exchange rate depends on adoption of budget and extension of IMF program, - Yatseniuk Prime Minister of Ukraine Arsenii Yatseniuk expects the parliament to be responsible in adopting the budget and extending the IMF program, as the rate of the national currency is contingent on it. 8 147 68 Ukrainian Politics

вр бюджет Poroshenko Bloc at odds over state budget The 2016 draft state budget will be introduced before the parliament as soon as the new draft Tax Code is submitted. 7 479 19 Previously in trend: Budget 2013

Competition between manufacturers will reduce burden on budget for military procurement expansion, - Turchynov The competitive struggle between manufacturers will reduce the burden on the budget in terms of expansion of the scope of military procurement. 4 306 12 Ukrainian Politics

турчинов turchynov "We are not going to reduce security and defense spending," – NSDC Secretary Turchynov. PHOTOS Since the hostilities in the east of Ukraine are still underway and the threat of Russian troops’ advance is high, strengthening of firepower of the Ukrainian Armed Forces, National Guard, and all the detachments in charge of the security and defense of Ukraine should be the priority of our state. 11 328 35 Incidents

Ukraine's NSDC Secretary: "We have to ensure that soldier's minimum wage be UAH 7,000" Ukraine's 2016 military budget approved by the National Security and Defense Council of Ukraine reflects the main goals of the National Security Strategy and the Military Doctrine of Ukraine. 16 720 151 Ukrainian Politics